Transcript Document

ASHRAE Chapter Best Practice
Chapter
Financial Risk Management
Financial Risk Management
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Chapter Treasurer Duties
Financial Accounting & Banking
Chapter Annual Audits
Revenue and Taxation Reporting
Fiduciary Duties
Chapter Treasurers
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Chapter Presidents to Prepare Balanced Budgets for Approval
by BOG.
Treasurer shall make all Deposits and issue all checks as
authorized by the BOG.
Treasurer to Balance Monthly Statements & Present to BOG for
Review & Approval; Keep Records.
Annual Independent Audit Committee appointed by BOG-Elect
Prior to Annual Chapter Meeting.
Chapter Account used for Operations Only.
Use Separate Accounts for Special Events such as CRC Fund
or Scholarships.
Responsible to File Tax Returns!!!-ASHRAE WEB SITE.
Financial Accounting and Banking
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It is recommended that each Chapter have its own copy of a reputable
Financial Software.
At least three Chapter officers should have signing authority.
At least two signatures are required on each check.
(for sums of $100 and greater.)
Consider separate bank accounts for high dollar special events.
Where possible all Research Donations should be forwarded directly
to ASHRAE Research.
All investments should be in safe low risk investments.
(I.e. bonds, term deposits).
Chapter Financial Audits
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Set up audit committee made up of Past Presidents
and or / Senior ASHRAE Members to perform
annual audit.
Larger Chapters may want to consider outside
accounting firms to perform financial audits.
Chapter Treasurers should not audit books for their
year.
Audit Findings should be presented to Chapter BOG
once per year.
Revenue and Taxation Reporting
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All USA Chapters must complete annual IRS
Form 990 tax returns.
There are separate forms for Small and
Large Chapters.
Revenue and Taxation Reporting
Small ASHRAE Chapter
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Annual Electronic Filing requirements for
Small Exempt Organizations- Form 990-N
(E-Postcard)
http.epostcard.form990.org
Small ASHRAE Chapters whose gross
receipts are normally $25,000 and less must
complete 990-N form.
Revenue and Taxation Reporting
Large ASHRAE Chapter
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Annual Electronic Filing requirements for Large
Exempt Organizations - Form 990 or 990-EZ.
Large ASHRAE Chapters whose gross receipts are
normally greater than $25,000 must complete Form
990 or 990-EZ.
The Board of Governors of the chapter should
review the completed 990 form before it is sent to
the IRS
Should consider using an outside CPA firm to
complete the tax return
Revenue and Taxation Reporting
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Your Tax filing is due every year by the end
of the 15th day of the 5th month after the close
of your year end.
For most Chapters the year ends on June 30
and the Tax Filing must be completed by
Nov.15th. (Check with IRS if not known)
You cannot file until after your tax year ends.
Information Needed To File
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Employee Identification Number (EIN) or
alternatively Taxpayer Identification Number (TIN).
Tax Year.
Legal name. (ASHRAE Chapter Chartered name)
Mailing address.
Alternative name organization uses.
Name and address of principal officer.
(Chapter President)
Confirmation of annual gross receipts.
Late Filing or Failure to File
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Chapters who fail to file tax returns risk IRS
fines.
They also would jeopardize the Society’s Tax
Exempt Status
The Society could dissolve the chapter
UNDERSTANDING FIDUCIARY DUTIES
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As a Chapter Officer you have a Fiduciary
duty to your ASHRAE Chapter.
The Law.com - Dictionary defines a fiduciary
as a person who has the power and
obligation to act for another…under
circumstances which require total trust, good
faith and honesty.
Fuduciary Primary Duties
A Fiduciary has three primary duties:
 Duty of Care
 Duty of Loyalty
 Duty of Obedience
Duty of Care
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Board members must exercise reasonable
care in overseeing the organizations financial
and operational activities.
Duty of Loyalty
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Board members must act solely in the best
interests of the organization and its
constituents, and not for personal gain.
Duty of Obedience
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Board members must act in accordance with
the organization’s mission, charter and
bylaws, and any applicable state of federal
laws.
Board members who violate these duties
may be held personally liable for any
financial harm the organization suffers as a
result.
Avoiding Conflicts of Interest
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One of the most important components of the
duty of loyalty is the obligation to avoid
conflicts of interests.
Step aside or abstain from voting when ever
there is an appearance of a conflict of
interest.
Please review the ASHRAE Codes of Ethics.
http://www.ashrae.org/publications/detail/14686
Can a Volunteer be Liable?
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A common misconception is that volunteers are
shielded from liability. In fact, though they do enjoy
some protection from financial responsibility, that
protection isn’t absolute.
ASHRAE Security & Privacy Policy does not apply to
sites of any ASHRAE chapter, region, student
branch, technical committee or other group affiliated
or associated with the Society.
ASHRAE Chapter Best Practice
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Enjoy your participation in ASHRAE